Financial Regulation Negotiations Overview 2023

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Questions and Answers

What is the expected date for the new Financial Regulation to enter into force?

January 2024

May 2024 (correct)

July 2024

December 2023

Which group was involved in the negotiations of the Financial Regulation?

Financial Compliance Board

Budgetary Oversight Committee

European Audit Office

Resource Directors Group (correct)

What is one of the key next steps mentioned in the document regarding the Financial Regulation?

Providing training (correct)

Reassessing budget allocations

Launching an online seminar

Reacting to financial crises

What was the political status of the Financial Regulation as of December 2023?

Political agreement achieved Signup and view all the answers

What new provisions are included for exclusion under the Early Detection and Exclusion System (EDES)?

Refusal to cooperate in investigations Signup and view all the answers

What is one of the technical updates aimed at reflecting the evolution of accounting practices?

Updated international public sector accounting standards Signup and view all the answers

What change regarding procurement of EU buildings was proposed but not retained?

Removal of local market prospecting obligation Signup and view all the answers

Which of the following new provisions allows for the exclusion of beneficial owners and affiliated entities under certain conditions?

Article 139(2) Signup and view all the answers

What aspect of the EU's financial management does Article 36 address?

Implementation of a compulsory data-mining tool Signup and view all the answers

When will the compulsory feeding of the data-mining tool take effect?

Starting from the post-2027 MFF programmes Signup and view all the answers

What aspect of the remuneration for external experts is to be aligned with market reality?

External experts lists duration Signup and view all the answers

Which new article addresses grounds for exclusion due to incitement to hatred or discrimination?

Article 139(1)(c)(vi) Signup and view all the answers

What is the purpose of formalizing advanced deadlines for the Court of Auditors and the Commission?

To improve the quality of consolidated accounts Signup and view all the answers

What change is proposed for the European Agricultural Guarantee Fund commitment rules?

Better alignment with standard accounting practices Signup and view all the answers

What is the purpose of setting specific conditions for third country entities in union award procedures?

To address security or public order issues Signup and view all the answers

What is a newly introduced element for budget implementation by EU institutions?

Non-financial donations Signup and view all the answers

Which article encompasses the simplification of rules on imprest accounts?

Article 86 Signup and view all the answers

What aspect of the agreement regarding the data-mining tool remains voluntary?

Utilization prior to 2028 Signup and view all the answers

What action may lead to an expedited procedure under the Early Detection and Exclusion System?

Nature or circumstances of the case Signup and view all the answers

What was the outcome regarding compulsory use of the data-mining tool?

No agreement was reached on compulsory use Signup and view all the answers

What is one of the agreed changes regarding the EDES checks by Member States?

Checks occur at the moment of award only for direct applicants. Signup and view all the answers

When will the application of the enhanced EDES system officially begin?

January 1, 2028 Signup and view all the answers

What is the maximum interest rate that may be applied to reimbursement of annulled fines according to the new proposal?

1.5% Signup and view all the answers

Which aspect of the EDES extension was limited compared to the original proposal?

Scope of application regarding the Recovery and Resilience Facility. Signup and view all the answers

What temporary measure was agreed upon concerning the negative revenue mechanism?

It will be limited to use until the end of 2027 only. Signup and view all the answers

What was the substantive addition to the Union's global initiatives proposal?

An obligation to inform the Parliament and the Council. Signup and view all the answers

What is excluded from the application of the EDES according to the recent changes?

Expenditure relating to the Recovery and Resilience Facility Signup and view all the answers

What aspect of the competition fines was addressed in the proposal?

Setting a lower interest rate for repayments than previously applied. Signup and view all the answers

What is the maximum amount that defines a 'very low value grant'?

€15,000 Signup and view all the answers

What administrative change regarding very low value grants is expected to take effect from the start of the next MFF?

Waiver of the declaration on honour requirement. Signup and view all the answers

What aspect is emphasized in the performance indicators for future sectoral basic acts?

Data to be collected should be aggregated by gender. Signup and view all the answers

What must the Commission and Member States respect when implementing the budget, according to the recent amendments?

EU values and the Charter of Fundamental Rights. Signup and view all the answers

What does the amendment concerning foreign subsidies aim to prevent?

Third-country participants with foreign financial support from obtaining EU procurement awards. Signup and view all the answers

Under what conditions can the authorising officer decide to verify the financial capacity of co-beneficiaries?

Based on risk assessment. Signup and view all the answers

Which of the following is true about the integration of social rights in programme performance?

They will apply where feasible and appropriate. Signup and view all the answers

What is a key aspect of the changes agreed to reduce administrative burden for applicants of very low value grants?

Simplification of requirements to ease the application process. Signup and view all the answers

What principle is explicitly referenced in relation to the green transition?

Do-no-significant-harm principle Signup and view all the answers

Which article introduces the definition of Non-governmental organisations (NGOs)?

Article 2(46) Signup and view all the answers

What does the principle of compliance pertain to when establishing or implementing the budget?

General Conditionality Regulation Signup and view all the answers

How is borrowing and lending transparency increased according to the new measures?

By enhancing reporting mechanisms Signup and view all the answers

What is emphasized to encourage sustainable options among economic operators?

Green award or selection criteria Signup and view all the answers

Which article addresses inconsistencies and redundancies in the current Financial Regulation?

Article 2(9) Signup and view all the answers

What must authorizing officers provide in their annual activity reports?

Information on exceptional circumstances Signup and view all the answers

Which article encourages the visibility of external assigned revenue in budget documents?

Article 22(1) Signup and view all the answers

What action relates to facilitating management of additional contributions from Member States?

Facilitating the management of voluntary contributions Signup and view all the answers

What does Article 61 clarify in relation to conflict of interest?

Applicable legal frameworks Signup and view all the answers

Study Notes

Outcome of Financial Regulation Negotiations

A political agreement was reached on the Financial Regulation (recast) in December 2023.
The new Financial Regulation is expected to be in force by May 2024.
An overview of the agreed changes and next steps is attached.
BudgPedia will provide further information and a presentation given to the RUF network on January 12, 2024.

Key Negotiations Steps

Training will be provided by BUDG.
The document thanks contributors for their support.
A list of resource directors was included.

Main Elements of the Political Agreement

Most of the Commission's proposed changes were accepted with minimal modifications.
Enhanced public transparency on EU funding beneficiaries.
Improvements to the Early Detection and Exclusion System (EDES).
Simplification of the legal framework for donations to the Union.
Clarifications and simplifications concerning indirect management.
Clarification of grant rules, adversarial procedures, and no-profit principle.
Compulsory data-mining and risk-scoring tool for audits and control.
Consideration of the interest for including green award criteria.
Increased transparency on assigned revenue.
Very low-value grants were simplified.
Additional procedural changes.
The legal framework on donations, rapid reaction, and conflict of interest was clarified.

Additional Details

The final legal text is still being reviewed by legal experts.
Formal adoption is expected at a Parliament plenary session in April 2024.
Some provisions might take effect in 2028.
Preparatory work is being done for the regulation's implementation (e.g., updates to guidance, training).
The document refers to legal instruments and mentions several articles.
The provided document lists various individuals involved in the negotiations.

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Description

Explore the outcomes of the Financial Regulation negotiations that led to a political agreement in December 2023. This quiz covers the key steps, main elements, and expected changes in EU funding regulations. Stay informed about the next steps and enhancements to public transparency and grant rules.